Fitch lifts three palm oil companies to positive

Fitch Ratings said it revised the outlook on Sinar Mas Agro Resources and Technology Tbk., PT Ivo Mas Tunggal and Sawit Mas Sejahtera to positive from negative.

The ratings on the three Indonesia-based palm oil producers also were affirmed at AA(idn).

The agency also said it affirmed Sinar Mas Agro’s Rp 3 trillion bond program and bonds due in 2017 and 2019 at AA(idn).

The outlook revision reflects the companies’ strong links to Golden Agri Resources, Ltd., which has nearly completed its investment in the downstream business, Fitch said.

This is expected to improve free cash generation and improve credit metrics, the agency said.

The outlook for oil palm plantation businesses also improved significantly following a recovery in crude palm oil prices in 2017, Fitch said, and stronger cash flows.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.